Let’s begin with some simple definitions. Subsidy-Based Insurance (SBI) is traditional insurance, insurance coverage where the carrier keeps about 35% of your premium and your business is thrown into a pool of other unknown business, often with a mixed if not problematic loss history. Your rate is determined by...Read more
Very few companies self-insure. Even the largest Fortune 500 companies do not self insure, they have Performance Based Insurance programs which include risk transfer features. Depending on their size, they might pay the first million or even first 100 million of every claim. But they’re still transferring the truly...Read more
Performance Based Insurance focuses on the long term, a comprehensive safety strategy, controlling premiums swings, paying for small losses and insuring for the unlikely severe loss. Many companies will see annual savings of 25% to 50%, while maintaining dramatically improved control over their cash flow and premiums. Simply said,...Read more
Bob Phelan describes successful workers’ compensation programs in terms of a three sided triangle, with a focus on rehabilitating injured workers and returning them back to work: Safety Injury Management PerformanceBased Insurance™ Last year, Phelan recommended that a regional chain of nursing home facilities depart from a traditional subsidized...Read more
Performance Based Insurance offers a compelling ROI for many companies, and will transform the insurance landscape in the coming decade. Safety conscious companies will typically reduce their insurance premiums 25% to 50%. The best in class performers can reduce premiums more than 50%. Let’s look at an ROI scenario...Read more
In the past, we’ve discussed some of the major problems caused with Subsidy Based Insurance (traditional insurance). Here is a list of some of the major advantages of Performance Based Insurance: Little or no subsidy to others Control your insurance destiny Eliminate unpredictable premium swings You earn the financial...Read more
Long known for innovation, TriPoint has been at the forefront introducing safety, HR consulting and Injury Management services to the CT marketplace. TriPoint introduced the concept of Performance Based Insurance, which pays dividends to companies who have strong safety cultures and control their losses.